South Korea's Samsung Electronics Co. Ltd. will pay NOR flash memory vendor Spansion Inc. $150 million over five years as part of a seven-year patent cross licensing agreement that settles all ongoing litigation between the two companies, Spansion said Monday (June 20).
The agreement calls for Samsung to make an initial payment of $25 million in August, followed by 20 quarterly payments of $6.25 million starting in the fiscal fourth quarter, Spansion (Sunnyvale, Calif.) said. But the first $30 million of the payments will be wiped out by Spansion's purchase of Samsung's bankruptcy claim against Spansion, Spansion said.
Provided that a bankruptcy court approves the claim as requested, the purchase of Samsung's bankruptcy claim will enable Spansion to retire between 1.65 million and 1.85 million shares, the company said.
Samsung offers Spansion $150 million settlement
Posted on Monday, June 20 2011 @ 22:01 CEST by Thomas De Maesschalck